The markets opened lower as investors reflected on persistent economic woes and the likely economic policies of president-elect Obama. The Dow lost more than 150 points to 9470 while Nasdaq fell 28 points to 1751.
On the upside
Time Warner (NYSE: TWX) posted flat results that beat expectations. However, its AOL business remained weak.Medco Health Solutions (NYSE: MHS) reported higher 3rd quarter earnings to beat targets while reaffirming its full-year profit guidance. The pharmacy benefits manager also announced a repurchase of up to $3 billion of stock.
Radian Group (NYSE: RDN) posted a profit through the distribution of its ownership interest in a subsidiary. Investors were focused on total reserves on its balance sheet which analysts felt were sufficient.
On the downside
Sara Lee (NYSE: SLE) posted a 1st quarter profit, but its outlook for 2009 remained weak. The maker of baked goods and deli meats also cancelled its stock buyback program.
Profit takers sold off shares of alternative energy companies. Shares of Sunpower (Nasdaq: SPWRA) were the hardest hit.
Shares of Cicsco Systems (Nasdaq: CSCO) slipped ahead of its earnings report sheduled for after the close of trading today.
In the broad market, declining issues outpaced advancers by a margin of 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks gave up 8 points to 537.
